Randolph Koppa, President, Trade and Development Bank of Mongolia

1. RACE TO THE FUTURE
Key Challenges and Opportunities for Continued Growth and
Investment in Mongolia
Mongolia 2012 Investment Summit
October 30, 2012
Randolph S. Koppa
President,
Trade and Development Bank of Mongolia

2. SIGNIFICANT HISTORICAL EVENTS
Khunnu
Empire
Chinggis
Khan forms
modern
Mongolian
state
Mongolian
sovereign
state
Mongolian
democratic
republic
Exports
coking coal
to China
OT investment
agreement with
Ivanhoe Mines and
Rio Tinto
HKSE IPOs
MMC- $749
SGE- $395
WINSWAY- $512
189 B.C. 1921 2005
1206 1990
2009
2010
MSE
volume up
277% to
$251 mln
$1.2 bln Debt
Issuance
so far
TDB issues
first
Mongolian
bond $75 mln
2007
TDB’s second
bond issue
$ 150 mln
October
2010
April
2012
2011
TDB’s third
bond issue
$ 300 mln
September
2012

3. • Coal and iron exports ramp up during 2009
• OT Agreement signed October 2009
At the first Mongolian Investment Summit
here two years ago, these were represented
in the pictures…
OF HUGE HISTORICAL SIGNIFICANCE

4. MONGOLIA

20. • What is the progress the country has made in
addressing the aspiration and needs of the
people and the development of the
infrastructure to handle the needs of a growing
economy?
• What needs attention?
• What are the opportunities?
WHAT HAS HAPPENED SINCE?

21. • Socio-economic landscape
• Obstacles to growth
• Economic Performance
• Priorities
• Key drivers for foreign investment
• Opportunities for investors
• Summary of progress
TOPICS

22. • Population growing
• Life expectancy increasing
• Urbanisation increasing
• GDP per capita increasing
• Education supported
• Medical services lagging
HUMAN DEVELOPMENT

23. THE MONGOLIANS
Source: UNDP

24. IMPROVING HUMAN DEVELOPMENT INDEX
Source: UNDP

25. OUTPACING OTHER ASIAN NEIGHBORS
Source: UNDP

27. THE SUN POWERS THE COUNTRYSIDE
• Over 100,000 herder gers use solar power
• 500,000 people affected
• 65% of nomadic residents
• 18% of total population
• Subsidy funding of less than USD 10
million
• World Bank, Netherlands Government,
GoM

28. Source: Ministry of Mineral resources and Energy, Mongolia

30. GER DISTRICT IN ULAANBAATAR

31. CLEANER BURNING MEANS CLEANER AIR
• 170,000 ger households in UB
• 65% of total urban households in UB
• 100,000 now have clean burn stoves which
reduce emissions of particulate matter 90%
• “The air is cleaner going out than coming in.”
• Others can use clean burn briquettes
• Funding from Millenium Challenge Fund and
others plus micro finance loans

32. TRANSFER PAYMENTS
• MNT 21,000 a month per person for 18
months or USD750 million
• Partly to fulfill old campaign promises
• Partly to share in advance the awaited
financial benefits of new mining projects
such as OT and TT
• Transfer payments now curtailed and limited
to students, elderly and needy
• Risk of Dutch Disease

33. STILL SCEPTICAL

34. PUBLIC OPINION
• Recent surveys of population show:
• 76% of respondents believe the government
should have majority control of large scale
mining projects
• Main reasons, 84%, are to protect Mongolian
interests, assure Mongolia control, to be run
efficiently and for national security. Only 8%
chose the reason to create revenue
Source: Sant Marat Foundation

35. HOW TO FINANCE GOVERNMENT INVESTMENT IN MINES
• 12% : it should come for free
• 20% : from government savings
• 16 % : from foregoing dividends
• 19% : from the international capital
market borrowing by the government for
its equity participation
CLEARLY, there are some challenging views
Source: Sant Marat Foundation

36. QUALITIES OF FOREIGN INVESTORS
• Respect of local culture and law
• Transparency
• International reputation
• Scale of operations
Source: Sant Marat Foundation

37. WHY?
• The scars from mining activity, the strain on the
ecosystem and way of life as roads and soon rail,
interrupt nomadic patterns for people, livestock and
wild animals, are seen as harmful and somehow
have been equated with foreign influence.
• Political seasons tend to heighten these issues
• Very high expectations have been created
• Old patterns take time to change
• More knowledge and better information needed.

38. A METAPHOR
• To understand some of the these issues
Consider this metaphor:
The recent mining boom is as if Mongolia
has been awarded by the world an A380
placed on the Gobi Desert

39. THE PLANE IS LOADED WITH USD 100 BILLS

40. HOW MUCH WOULD THAT BE?
$10,000, $1 million, $ 1 billion

41. ONE BILLION DOLLARS LOOKS LIKE THIS

42. HOW MUCH CAN AN A380 HOLD?
• In the passenger luggage hold, USD 2
billion
• As a cargo plane, USD 15 billion, which
weighs almost 150 tons which represents
the plane’s maximum payload.

43. THERE IS ONE CONDITION
You have to get the plane to fly!
Then the money can be showered down
for the Mongolian people to collect.

44. LEARN TO FLY AND BUILD THE RUNAWAY
• At present, the plane is taxiing and has
turned onto the runaway for take off
• The run away is still being built
• 2.8 million Mongolians are watching
• Will the runaway be completed in
time?

45. WHAT HAPPENS NEXT?

46. WILL IT BE THIS?

47. OR WILL THIS FOIL THE TAKE OFF?

48. MEANING OF THE METAPHOR
• Mining investment and development
have been advancing at a faster pace
than the underlying infrastructures
necessary to handle the growth

50. Mln Mt/brl 2010 2011 2012 3Q
COAL 16.7 21.1 14.3 +3.4% YoY
COPPER .56 .57 .43 +12.5% YoY
IRON ORE 3.6 5.8 4.6 +12% YoY
CRUDE OIL 2.1 2.5 2.4 +38.6% YoY
EXPORTS VOLUMES BOOM DESPITE LAGGING INFRASTRUCTURE
Source: NSO

51. EXPORTS REVENUES EASE AS MARKET SOFTENS
VALUE 2010 2011 2012 3Q
EXPORTS
+ 54%
USD 2.9 bln
+ 66%
USD 4.8 bln
-4.7%*
USD 3.2 bln
COKING COAL Up 188% Up 155% Down 6.8%
IRON ORE Up 186% Up 72% Up 27.2%
COPPER
CONCENTRATE
Up 54% Up 25% Down 15.9%
CRUDE OIL Up 34% Up 63% Up 33.3%
Source: NSO
* On top 4 minerals only

52. MONGOLIAN COAL EXPORTS
Source: NSO & TDBC
• Average price in 2011 $110 per ton
• Average price in 2012 $100 per ton
2.5 3.3 4.2
7.1
16.7 21.1
14.3
22*
52
65
70
0
10
20
30
40
50
60
70
80
2006 2007 2008 2009 2010 2011 Sep,2012 2013 2014 2015
Mt
ACTUAL FORECAST
* Revised forecast by TDB

53. IRON ORE EXPORTS
87 81
250
437
382
550
0
100
200
300
400
500
600
700
2008 2009 2010 2011 Sep, 2012
Actual Forecast
USD Mln
Source: NSO and TDB

54. COPPER PRODUCTION
70
170 160
280
420
600
760
0
100
200
300
400
500
600
700
800
900
1000
2007 2009 2011 2013 2015 2017 2019
Erdenet Mining Corporation Oyu Tolgoi
Source: Oyu Tolgoi
‘000 Mt

55. 10.9
14.6
18.0
20.9
25.5
29.6
-5.0
0.0
5.0
10.0
15.0
20.0
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Actual Forecast Real GDP growth rate Source: IMF & NSO
USD bln %
NOMINAL ANNUAL GDP AND REAL GDP GROWTH

56. INFLATION PREDICTION
Source: IMF and NSO
8.2
26.8
6.3
10.2
9.5
13.6
12.5
9.7
8.2 7.6 7.0
0
5
10
15
20
25
30
2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
CPI (%) Y-O-Y
September 2012 YoY 14.8%; Ulaanbaatar city 13.4%

57. 60 123 102
-296 -329
2
-391 -486 -300
-1000
0
1000
2000
3000
4000
5000
6000
7000
8000
2005 2006 2007 2008 2009 2010 2011 2012E* 2013
Preliminary
Revenue Expenditure Budget Balance
BUDGET INDICATORS

58. PRIORITY ISSUES
• Fiscal control
• Inflation reduction
• Infrastructure
• Management of expectations
• Foreign investment law clarity
• Enforcement of laws
• Consistency and transparency

59. INFRASTRUCTURE
• Power: Mongolia facing a 4oo MW shortage
• Rail: Needed to maintain price advantages
and to reduce negative environmental impact
of trucking
• Road: For mine supplying and to borders
• Water: Need to resolve supply and use
questions in the South Gobi and elsewhere

60. TRANSPORTATION NETWORK
Source: MRTCUD

61. RECENT PROGRESS
• MMC commencing 250 km rail to border
• DBM funding for east line to Sainshand
• 50MW Salkhit wind farm turbines up
• CHP 5 450 MW USD 1.4 bn power plant in UB
negotiating concession agreement with
Mongolia/International consortium
• Other power initiatives in process as tariffs
have been raised to underpin financing

62. BREAKTHROUGH
• Mongolia sovereign bond to be launched
• USD 1.5 bn
• Aimed to finance needed infrastructure to
support exports
• Leverage funds through PPP
• Not for budget shortfalls
• Key: resource nationalism rhetoric to be
toned down

63. OTHER DEVELOPMENTS
• Construction
• Cement
• Steel
• Animal and agri value added processing
• Import substitution
• Consumer goods
• Financial services

64. DUTCH DISEASE
• Not a great threat to traditional exports of
cashmere hair and bulk meat
• Movements towards higher value potentially
brand-able exports has begun
• Import substitution, services and further
processing could face labor shortages but can
provide buffer to imports
• Inflation always threatens
• Green movement helps

65. TOTAL FINANCING AND INVESTMENT NEEDS AND
OPPORTUNITIES 2010 TO 2015
• Mine Development $ 12 bn. to $ 20 bn.
• Infrastructure $ 8 bn. to $ 12 bn.
• Urban development $ 6 bn. to $ 8 bn.
• Agriculture $ 1 bn. to $ 2 bn.
• Industry and Commerce $ 15 bn. to $ 20 bn.
• Environment $ 1 bn. to $ 2 bn.
• Social $ 1 bn. to $ 2 bn.
• Financial Sector $ 1 bn. to $ 2 bn.
Totals: $ 45 bn. to $ 68 bn.

66. POTENTIAL SOURCES OF FUNDS 2010-2015
• FDI $ 11 bn. to $ 14 bn.
• Domestic sources $ 12 bn. to $ 18 bn.
• Sovereign Borrowing $ 3 bn. to $ 6 bn.
• Foreign Capital Markets $ 11 bn. to $ 16 bn.
• IFI & Foreign bank Loans $ 7 bn. to $ 12 bn.
• Donors and NGOs $ 1 bn. to $ 2 bn.
Total $ 45 bn. to $ 68 bn.

67. 7.6
3.3
0.6
5
3
0.4
1.5
4.5
14
18
6
16
12
2
0
2
4
6
8
10
12
14
16
18
20
FDI Domestic Sovereign Foreign
Cap.Mkts.
Foreign
Loans
Donors
SO FAR, USD 20 BN RAISED USD 6 BN IN PIPELINE

68. FOREIGN INVESTMENT
0.5 0.7 0.8
1.3
4.8
1.6
2,2
2.8
3.65
4.6
0
1
2
3
4
5
6
2007 2008 2009 2010 2011 2012 2013 2014 2015
USD bln
Actual Projected based on 30% annual CGR 2004 to 2010
Source: World bank and FIFTA

69. FOREIGN INVESTMENT KEYS
• Clear and consistent legal and regulatory
environment
• Fiscal discipline
• Focused infrastructure investment
• Information and education
– Public – importance of foreign investment
– Government – FDI requirements and interest in
welcoming foreign investment
– Investors – Mongolia’s enduring strategic
advantage in serving China’s needs

70. CONCLUSIONS
• Mongolia still adjusting to market economy
• Pace and staging of developments has impacted
foreign opinion
• Democracy prompts speaking out
• New foreign investment law needs clarifying or
changing
• Infrastructure is in focus
• Move to sovereign bond soon signals
understanding of conditions necessary for a
successful issue

71. RECOMMENDATIONS
• Engage
- Here
- In Mongolia
- Communicate with all constituents
Come and see us!
Remember, There are more than USD 40 billion of
opportunities in the next few years

72. JUST THREE FULLY LOADED

73. OR, SKIP THE PLANE CHARTER
Simply wire the funds through TDB

74. Thank you for your attention!
Juulchin Street - 7
Baga Toiruu - 12
Ulaanbaatar, Mongolia
Tel: 976-11-31 99 43
Fax: 976-11-31 24 18
Email: corrbanking@tdbm.mn
http://www.tdbm.mn
http://www.bankcard.mn
http://www.mongolianbusinessguide.com

75. TDB Presentation

76. Company Overview
Corporate Banking International Banking Treasury Retail and SME Banking
ATM
Internet
Bank
Unrivalled Relationships with International
FIs
•Maintains 38 nostro accounts in 14 currencies at 27
top rated foreign banks in 16 different countries
•Direct correspondent relationships with >150 foreign
financial institutions
•Clean trade finance lines from 32 large foreign
institutions
Wide Scope of Products and Services
Provided
•44 branches, 107 ATMs, 1170 merchants, 1773 point of
sale terminals
•Most advanced virtual banking services, such as
Internet Banking service, Mobile Banking Service, E-
Billing
•Ability to process payments under Visa, MasterCard,
JCB/Discover and Diners
TDB
30.8%
Other
69.2%
3Q2012, Corporate Loans
market share
36.6%
21.3%
29.3%
0%
10%
20%
30%
40%
Gold
market
Money
market
FX
market
3Q2012, Treasury
market share

77. Company Highlights
■ Profitable and efficient corporate bank uniquely
positioned to benefit from Mongolia’s growth
potential
■ The “International Face of Mongolia”
■ Increasingly sizeable retail banking platform
driven by selectively targeting high income
customers
■ Efficient asset and liability management to
ensure high liquidity
■ Leadership in profitability and efficiency
throughout business cycles
■ Market leader in risk management and strong
corporate governance
■ Experienced management team with proven
track record
2009 2010 2011 2012.09
Total Asset 578.8 1,065.0 1,498.8 1935.4
Total Loans (net) 290.2 369.5 805.5 1110.3
Total Deposits 479.0 912.2 941.1 1540.6
Total Equity 48.0 70.2 100.0 197.4
Net Profit 10.7 16.5 30.2 35.8
Capital Adequacy 13.0% 15.9% 12.7% 14.1%
ROAA 2.1% 2.3% 2.6% 3.1%
ROAE 22.6% 26.9% 39.8% 35.7%
MNT/USD = 1394.47 * Including bonds
Financial Results (mln.USD)*Financial Results (mln.USD)*
Bank Ratings by Moody’sBank Ratings by Moody’s
• Senior Unsecured EMTN (foreign currency) B1
• LT/ST Bank Deposits (foreign currency) B2/NP
• LT/ST Bank Deposits (domestic currency) B1/NP
• LT/ST Issuer Rating B1
• Subordinated foreign currency issue B2
• Local currency bank deposit B1
• Outlook Stable

78. Company Overview
Market Share by AssetsMarket Share by Assets
Market Share by DepositMarket Share by Deposit
Market Share by LoanMarket Share by Loan
Market Share by ProfitMarket Share by Profit
* By BOM reports As of Sep 2012
TDB
25.4%
Other
74.6%
TDB
22.8%
Other
77.2%
TDB
22.6%
Other
77.4%
TDB
33.3%
Other
66.7%

79. US Global Investment LLC
Globull Investment &
Development SCA
Individual
Shareholders
Goldman Sachs Mongolia
Investments Limited
Mr. Erdenebileg Doljin
Central Asia Mining LLC The Goldman Sachs
Group, Inc
Treasury Stock
50%
100%
50% 100%
100%
65.8%
7.3% 3.8% 4.8% 18.3%
Strive to internationalize and diversify shareholder base demonstrated by Goldman Sachs
Group’s recent equity investment
Ownership Structure

80. Organizational Structure

81. Accomplishments
Continuously at the Forefront of Innovation
1990 1992
1993 1996
2001 2004
2006 2007
2008 2010
2011 2012
First state-owned
commercial bank
in Mongolia
First Mongolian Bank
to adopt International
Financial Reporting
Standard
First to Introduce
modern banking
technology to Mongolia
First deliver cash services
of AMEX, VISA,
MasterCard, JCB and
Traveler’s cheque
First to become a
member of SWIFT
network
First Mongolian Bank
to offer ATM services
First Mongolian Bank
to commence gold
exports into foreign
markets
First Mongolian
Bank to participate
in international
syndicated loan
transaction
ADB and IFC injected
US$11 mm capital into
TDB - First bilateral
investment made into
the Mongolian banking
sector
First Mongolian
Commercial Bank to be
rated by Moody’s and
with credit ratings
above the country
ceiling
First Mongolian
company to issue in
the international
capital markets –
US$75 mm senior
unsecured bond off
a US$150 mm
EMTN Programme
First Mongolian
bank to launch
international
Martercard and issue
Euro MasterCard
First Mongolian
company to be a
repeat issuer in the
international bond
market (US$150
mm senior notes)
Introduced EMV
chip card in credit
cards
First Mongolian bank to
establish an investment
banking subsidiary which
obtained underwriting
and brokerage licenses
from Mongolia FRC
“Best Trade
Finance Bank
in Mongolia” in
both 2011 and
2012 by GTR
journal
GS Mongolia
Investments Ltd., a
subsidiary of The
Goldman Schs Group
invested 4.78% in
TDB
First bank to
launch
Mongolian T
brand card
“Best Bank of
Mongolia” by
FinanceAsia
FMO provided
US$20 mm loan
to TDB
Introduced
“Most Money”,
an advanced, up
to date and high-
tech electronic
bankingservice

82. Strategy
Clear Strategy to Maintain Leadership in Corporate Banking and Selectively Expand into Retail
and SME Banking

83. Company Highlights
Profitable & Efficient Corporate Bank Uniquely Positioned to Benefit from Mongolia’s Growth
Potential
… with Steady Rise of Number of Corporate Customers… with Steady Rise of Number of Corporate Customers Diversified Loan ExposureDiversified Loan Exposure
Consistent Growth in Lowest Cost Corporate DepositConsistent Growth in Lowest Cost Corporate Deposit
Agriculture
1.8%
Mining 19.6%
Manufacture
13.3%
Petroleum
import 5.9%
Retail and
wholesale trading
18.3%
Construction
10.7%
Travel 2.1%
Transportation
2.4%
Mortgage
12.2%
Consumer
12.2%
Other 1.5%
3Q2012 Total Loans Mix by Industry
15,515
17,421
19,991
22,071
0
5,000
10,000
15,000
20,000
25,000
2009 2010 2011 3Q2012
No. of Corporate Customers
252 267 562 718
Total
Corporate
Loans
(US$ mm)
207.4
341.9 406.2
607.1
0
200
400
600
800
2009 2010 2011 3Q2012
Corporate Deposits

84. Company Highlights
The “International Face of Mongolia”
Top Trade Finance Bank in MongoliaTop Trade Finance Bank in Mongolia
TDB
49%
Other
52%
FY2011 Market Share of Mongolian Trade
Finance Transaction
■ Maintains 40 nostro accounts in 14 currencies
at 29 top rated foreign banks in 16 different
countries.
■ Direct correspondent relationship with >150
foreign financial institutions.
■ Only Mongolian Bank which has arranged
syndicated club deals with foreign banks for
MNT58 bln and > USD170 mm since 2005.
■ Clean trade finance lines from 32 large foreign
institutions with amount of US$267.57 mm as
of Sep 2012.
■ US$35 mm trade finance line
■ US$30 mm trade finance line
■ EUR 21 mm trade finance line
■ US$15 mm trade finance line
■ EUR11 mm trade finance line
29.4
70.3
94.6
2010 2011 1H2012
Leading Bank by Borrowings
from Foreign Institutions
(US$ mm)

85. Company Highlights
The “International Face of Mongolia”
Only Mongolian Repeat Issuer with Proven Track
Record of Debt Repayment in the International Market
Only Mongolian Repeat Issuer with Proven Track
Record of Debt Repayment in the International Market
2007
US$75 mm
3-yr Senior
Notes
Fully Repaid
in 2010
2010
US$150 mm
3-yr Senior
Notes
2010
US$25 mm
5-yr
Subordinated
Notes
First Mongolian issuer in the international
capital market
2012
US$ 300million 8.5% Unsecured Senior Notes
Under US$ 700 million EMNT Program
Banks
and
Others
15%
Asset
Manag
ers,
60%
Private
Banks,
25%
Investor profile
Asia ,
60%
Europe
, 35%
Offshor
e US,
5%
Geographic demand
Joint Arrangers /
Joint Book
Runners /
Joint Lead
Managers
Listing Stock Exchange Rated by

86. Company Highlights
Efficient Asset and Liability Management to Ensure High Liquidity
Diversified and Strong Funding BaseDiversified and Strong Funding Base
519
881
1368
1935
0
500
1000
1500
2000
2500
2009 2010 2011 3Q2012
Sources of Funding
Consistently High Contribution of Low Cost
Deposit
Consistently High Contribution of Low Cost
Deposit
Diversified funding base as a result of strong lending relationships with international banks and
price leadership in deposit funding
Deposits from
customers 54.9%
Interbank
deposits and
borrowings FIS
9.8%
Debt securities
issued 22.8%
Equity, included
subordinated
debt 10.2%
Other liabilities
2.3%
41.4% 37.3% 41.2% 43.2%
12.9%
12.2%
16.1% 14.9%
44.8% 49.1%
41.7% 40.8%
0.8% 1.3% 1.0% 1.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012.09.30
Other Time Savings Current account

87. Company Highlights
Efficient Asset and Liability Management to Ensure High Liquidity
Well Balanced Asset CompositionWell Balanced Asset Composition Asset/ Loan growth exceeds sector’s medianAsset/ Loan growth exceeds sector’s median
Comparison of Assets and Loans to Banking SectorComparison of Assets and Loans to Banking Sector
TDB Asset Growth 22.9% 65.2% 56.1% 29.1%
Mongolian Banking Sector Asset Growth 21.1% 41.2% 50.1% 17.0%
2009 2010 2011 2012.09
TDB Loan Growth (7.7%) 14.3% 141.9% 37.8%
Mongolian Banking Sector Loan Growth 0.4% 21.5% 72.3% 22.2%
Cash 2.1%
Interbank
Deposits 3.9%
Investment
Securities 7.5%
Net loan 57.4%
Others
29.1%
66.8%
50.1%
34.7%
53.7%
57.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
500
1000
1500
2000
2500
2008 2009 2010 2011 2012.09
USDmillions
Gross Loans Total Assets Loan/Assets

88. 14.20%
13.00%
15.90%
12.40%
14.50%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2008 2009 2010 2011 3Q2012
Company Highlights
Efficient Asset and Liability Management to Ensure High Liquidity
Decreasing NPLDecreasing NPL
5.30%
4.10%
2.50%
1.30%
17.10%
11.30%
6%
4.80%
2009 2010 2011 3Q2012
TDB NPL Ratio Industry NPL Ratio
Substantial Improvement in Capital BaseSubstantial Improvement in Capital Base
BoM
minimum
required
level
12.0%
… while Maintaining High Proportion of Liquid Assets
Mitigating Liquidity Risk
… while Maintaining High Proportion of Liquid Assets
Mitigating Liquidity Risk
47%
67%
43%
37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2009 2010 2011 3Q2012
Minimum
Liquidity
Ratio set
by BOM
>25%
Highest Credit Quality Across Peers (As of Sep 2012)Highest Credit Quality Across Peers (As of Sep 2012)
1.3% 1.3% 1.3%
2.3%
0.7%
2.0%
2.3%
1.7%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
TDB Khan Xac bank Golomt
Loan in arrears NPL ratio

89. Company Highlights
Most Profitable and Efficient Bank
Operating Income MixOperating Income Mix
22.6 20.9
34.5 38.8
8.7 11.6
18.9
17.3
0
10
20
30
40
50
60
2009 2010 2011 3Q2012
Net Interest Income Non Interest Income
Non
Interest
Income
Ratio
(US$ mm)
27.7% 35.6% 35.3% 30.9%
31.3 32.5
53.4 56.1
Best-in-Class Operating EfficiencyBest-in-Class Operating Efficiency
40.50% 41.00%
27.00%
31.20%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
2009 2010 2011 3Q2012
Cost Efficiency Ratio
Operating
Expense
(US$ mm)
12.7 13.3 14.4 17.5
Net Profit and ROAENet Profit and ROAE Net Profit Per EmployeeNet Profit Per Employee
10.7
14.8
30.2
35.8
22.60%
26.90%
39.80% 35.70%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
0
10
20
30
40
2009 2010 2011 3Q2012
Net Profit ROAE
15,582
19,763
29,775 30,573
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2009 2010 2011 3Q2012

90. Company Highlights
Most Profitable and Efficient Bank
Non Interest Income Ratio Growth Comparison (As of June
2012)
Non Interest Income Ratio Growth Comparison (As of June
2012)
FY2011 Cost Efficiency Ratio Comparison (As of June 2012)FY2011 Cost Efficiency Ratio Comparison (As of June 2012)
FY2011 ROAE Comparison (As of Sep 2012)FY2011 ROAE Comparison (As of Sep 2012) FY2011 Profit per Employee Comparison (As of Sep 2012)FY2011 Profit per Employee Comparison (As of Sep 2012)
7.60%
5.00% 3.90%
-7.30%-10.00%
-5.00%
0.00%
5.00%
10.00%
TDB Golomt Khan Xacbank
FY2009-2011 Non Interest Income Ratio
Growth2011 Non
Interest
Income
Ratio
35.3% 40.8% 20.7% 6.1%
27.00%
39.40%
48.80%
63.30%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
TDB Golomt Khan XacBank
35.7%
23.6%
17.7%
14.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
TDB Khan Xac Golomt
42,633
17,302
11,584
7,558
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
TDB Golomt Khaan Xac

91. Company Highlights
Efficient Asset and Liability Management to Ensure High Liquidity
Risk Governance FrameworkRisk Governance Framework
Industry leading risk management framework and strong corporate governance to fully control
key risks

92. “Excellent Quality of Straight
Through Processing Award
2008” by Germany
Commerzbank AG
2009 “Best Spread Bank"
by Thomson Reuters
Agency
2007 “VISA Outstanding New
Product Designing” (Visa
International)
2006 “Best business entity for its
social responsibility” Mongolian
National Chamber of Commerce
2006 “Quality Recognition
Award” (Citibank, USA)
2005 “Best Bank of the Year”
(The Bank of Mongolia)
2001, 2002 Best Bank in
Mongolia
(“The Banker”)
2011 “The Best Bank”
“Top – 5 Banks of Mongolia”
2012, 2011 “Best Trade
Finance Bank in Mongolia”
(Global Trade Review)
2011 “Investment Envoy”
(Foreign Investment & Foreign
Trade Agency of Mongolia)
2012 “Best Bank of
Mongolia”
FINANCE ASIA
External Recognition

93. Contact us
Director of International Banking Department
Ms. Erkhembayar Baltsukh
Tel: +976 11 319943 ext. 1408
Fax: +976 11 312418
Email: erkhembayar@tdbm.mn
TDB
Juulchin Street - 7, Baga Toiruu - 12
Ulaanbaatar, Mongolia
Swift: TDBMMNUB
Website: www.tdbm.mn